REDUCTION OF GST ON SERVICES IN CERTAIN
CATEGORIES
The Goods and Services Tax
Act, 2017 came into force in India with effect from 1.7.2018.
The GST Council has reduced
GST rate of tax from 28% to 18% on the following services.
Services by way of
Admission
|
GST rate of tax
upto 24.1.2018
|
Revised GST rate of
Tax rates effective from 24.1.2018
|
Amusement Parks
|
28%
|
18%
|
Ballet
|
28%
|
18%
|
Camel Joy rides
|
28%
|
18%
|
Casinos
|
28%
|
18%
|
Elephant Joy rides
|
28%
|
18%
|
G0-carting
|
28%
|
18%
|
Joy Rides
|
28%
|
18%
|
Merry-go-rounds
|
28%
|
18%
|
The Press release issued by the Central Government is given
below for ready reference.
Recommendation made by the GST Council in its 25th Meeting held on 18th January, 2018
at Delhi for reducing GST rate on admission to amusement parks and ballet etc, from
28% to 18%.
In the meeting held on 18th January, 2018, the GST Council has recommended
reduction of GST rate on services by way
of admission to amusement parks including
theme parks, water
parks, joy rides, merry-go-rounds, go-carting and ballet from
28%
to 18%. These services hitherto attracted GST @ 28%. Requests were received from several quarters that amusement parks promote
social wellness and
beget fun
and learning for children
and their families in
a real active entertainment and therefore, the rate
may be reduced to
18%.
The notifications giving effect to the recommendations of the Council will be issued on
25th January, 2018. Accordingly, admission to amusement parks including
theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet shall be taxable at the lower rate of
18%.
It is expected and
hoped that States do not raise the tax
on entertainment and amusement levied
by the
local authorities (Panchayats/ Municipalities/
District Councils) so
as to increase the tax burden
on the amusement parks. This will ensure that
the
rate cut in GST is
passed on to children.